Deceptive and False Advertising Holds Legal Liability Online advertising must follow certain guidelines under the Federal Trade Commission Act and the Department of Transportation. The advertisement must be truth and misleading and must not mislead consumers. Hotwire has been fined $50,000 following a federal inquiry that found the online travel company was running deceptive advertising. The U.S. Department of Transportation decision has taken action in response to formal complaints filed by American Trans Air and Frontier Airlines and has become another entity that has become an enforcer of deceptive and false advertising.
The following questions have been addressed in this article:What other regulations may advertisers face?
What are practical considerations that must be considered before advertising is undertaken?